Automaker Stellantis is preparing a $10 billion investment in the U.S., including factory redevelopment, new Jeep and Dodge models and bringing back jobs in Belvidere.
Stellantis to invest $10 billion in the U.S. to save Jeep and Ram
Stellantis NV, owner of the Jeep and Ram brands, is preparing to announce a massive investment in the U.S. of about $10 billion. Some of the money will go to redevelop plants in Illinois and Michigan, build new models and bring back employees. It signals a shift in strategy for the company, which previously focused on Europe and Mexico, where demand and profitability were lower.
New models and production return
Stellantis wants to not only revive Jeep, but also invest in Dodge, including the potential launch of a new V8 muscle car, according to people familiar with the plans. The long-term outlook for the Chrysler brand is also being discussed. One of the key developments could be the production of a new midsize pickup truck at the shuttered Belvidere plant, where Stellantis has promised to bring back about 1,500 jobs.
Political implications and the tariff factor
The investment coincides with the policy of the Donald Trump administration, which is actively encouraging manufacturers to invest in the American economy. Similar steps have already been taken by Hyundai and major European pharmaceutical companies. For Stellantis, the money could also become leverage in negotiations to eliminate or reduce the 25% tariff on Ram pickup trucks made in Mexico.
Challenges in Europe
The focus on the US is worrying European unions, as the company has already temporarily suspended work at eight plants in Europe due to weak demand. In October, Stellantis CEO Antonio Filosa will meet with Italian unions, where he will be asked to stick to previous plans for production in Italy, amid fears of plant closures.
Will he be able to turn things around?
Filosa, who succeeded Carlos Tavares, must restore Stellantis’ position in the company’s key American market. The first signs of success are already visible, with US sales increasing in the third quarter, fueling investor optimism. But at the same time, Stellantis faces excess production capacity in Europe and pressure from Chinese competitors who are actively entering the market with cheaper models.
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